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As expected, the U.S. Department of Labor (DOL) has formally delayed the effective date of the Tip Regulations Final Rule, from March 1, 2021 to April 30, 2021. The Tip Regulations Final Rule, issued in late December 2020, implemented a 2018 amendment to the FLSA that permits tipped employees, such as restaurant servers, to pool tips with non-tipped workers, such as cooks and dishwashers, so long as the employer does not take a “tip credit,” while prohibiting employers, including managers and supervisors, from keeping tips received by employees under any circumstances. The Final Rule also codified, with minor changes, the DOL’s elimination of the so-called “20%” or “80/20” Rule, limiting the percentage of time (
DOL Delays Tip Regulations Final Rule natlawreview.com - get the latest breaking news, showbiz & celebrity photos, sport news & rumours, viral videos and top stories from natlawreview.com Daily Mail and Mail on Sunday newspapers.
Thursday, February 11, 2021
One day after President Biden entered office, the White House issued a memorandum directing all agencies to review, and consider delaying, any rules that had been issued by the former administration but that were not yet effective. Following that directive, the U.S. Department of Labor (DOL) has proposed delaying the effective dates of the recently-issued Tip Regulations and Independent Contractor Final Rules. Under the proposal, the effective dates of these Final Rules would be postponed 60 days, from March 1, 2021 to April 30, 2021 for the Tip Regulations Final Rule and from March 8, 2021 to May 7, 2021 for the Independent Contractor Final Rule.
Wednesday, January 27, 2021
On January 19, 2021, eight states (Delaware, Illinois, Maryland, Massachusetts, Michigan, New Jersey, New York, and Pennsylvania), along with the District of Columbia, filed a lawsuit seeking to enjoin the Tip Regulations Final Rule published by the U.S. Department of Labor (DOL) in late December 2020. The Final Rule, which currently is scheduled to become effective in early March, focuses primarily on two things: (1) implementing the Congressional amendment to the Fair Labor Standards Act (FLSA) that permits tip sharing between “back of the house” employees (
e.g. cooks and bussers) and “front of the house” employees (
e.g. servers)
if a tip credit is not taken, while expressly prohibiting managers and supervisors (as defined in the Final Rule) from sharing in tips; and (2) rejecting the so-called “80/20 Rule” limiting the time tipped employees may spend performing allegedly non-tipped duties. The lawsuit focuses primarily o
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On January 19, 2021, eight states (Delaware, Illinois, Maryland, Massachusetts, Michigan, New Jersey, New York, and Pennsylvania), along with the District of Columbia, filed a lawsuit seeking to enjoin the Tip Regulations Final Rule published by the U.S. Department of Labor (DOL) in late December 2020. The Final Rule, which currently is scheduled to become effective in early March, focuses primarily on two things: (1) implementing the Congressional amendment to the Fair Labor Standards Act (FLSA) that permits tip sharing between “back of the house” employees (
e.g. cooks and bussers) and “front of the house” employees (